Brokerage: CLSA | Rating: Underperform | Target: Rs 525
The brokerage observed that the company’s EBITDA margin was 4 percent below estimates. The next leg of margin improvement must be led by double-digit revenue growth. Further, it added that the surprise decline in India’s revenue pulled down EBITDA margin. CLSA said that the slower than expected margin improvement is driving the 20 percent EPS cut.
Brokerage: ICICI Securities | Rating: Reduce | Target: Rs 468
ICICI Securities observed that profitability margins are still at subdued levels for the firm. It lowered revenue and earnings estimates by 2-3 percent and 8-9 percent for FY18-19. It expects 14.2 percent revenue and 29 percent adjusted net profit CAGR over FY17-19.
Brokerage: Deutsche Bank | Rating: Hold | Target: Rs 3,300
The global investment bank observed that 2% volume growth was unsatisfactory, given it had similar growth in Q3. No positive impact was visible despite improving market conditions, it said. Furthermore, it said that the turnaround in the company was complete and it expects deceleration in earnings growth going forward.
Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 560
The research firm raised EPS targets for the current and next fiscal by 14 and 18 percent led by 180 bps rise in its market share over FY18-20. It believes that its joint venture with Arcelik is structurally positive. The value growth will exceed volume growth in the UCP segment, it added.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 480
The brokerage believes that its foray into consumer durable business mitigates concerns of single segment exposure. The success in air cooler is setting the stage for larger growth.
Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 12,800
The company’s Q4 revenue disappointed as growth unexpectedly slowed down from Q3, it said. Volume growth of 8 percent was low by the company’s normal trajectory of mid-teens growth. Women’s innerwear revenue growth at 12 percent was disappointing it added. While Credit Suisse likes the company’s structural story, its valuations are much stretched, it added.
Brokerage: BofAML | Rating: Underperform | Target: Rs 413
The global investment bank observed that its Q4 net profit was in line, but several one offs could cloud results. Its adjusted EBITDA beat estimates due to surprising upside to core GRMs.
Brokerage: CIMB | Rating: Reduce | Target: Rs 340
CIMB expects rising competition in auto fuels to limit marketing profit growth. For the brokerage, higher marketing margins despite lower market share are key upside risks.
Brokerage: ICICI Sec | Rating: Buy | Target: Rs 504
ICICI Securities said that the firm was its top pick among oil marketing firms. It estimates PBT from Paradip refinery at Rs 3,700 Cr in FY18 vis-à-vis loss in FY17. The key risks to the stock include Paradip performance disappointment as well as lower GRMs.
Brokerage: Nomura | Rating: Buy | Target: Rs 500
The brokerage said that its earnings could surprise, mainly driven by Paradip ramp up. It believes that the firm will continue to outperform peers as it has been in last 1 year
Brokerage: Citi | Rating: Buy | target: Rs 462
The brokerage maintains buy on all OMCs and recommends investors to consider exposure to IOC. The impact of GST and potential increase in stranded taxes are the key things to watch.
Brokerage: Goldman Sachs
Strong refining margins were offset by weakness in the marketing segment, the brokerage observed. It is looking to get more colour on drivers of weakness in the marketing division.
Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 98
Credit Suisse observed that NMDC’s results were a miss on higher wage costs and other one-offs. Prices are likely to fall soon, it believes. It doesn’t see any progress w.r.t sale of under construction 3 MTPA steel plant
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